Viomi Technology (NASDAQ:VIOT) and Akamai Technologies (NASDAQ:AKAM) Critical Review

Akamai Technologies (NASDAQ:AKAM) and Viomi Technology (NASDAQ:VIOT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares Akamai Technologies and Viomi Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akamai Technologies	$4.21 billion	3.65	$452.03 million	$3.08	34.36
Viomi Technology	$290.30 million	0.34	$8.69 million	($0.21)	-6.86

Akamai Technologies has higher revenue and earnings than Viomi Technology. Viomi Technology is trading at a lower price-to-earnings ratio than Akamai Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Akamai Technologies and Viomi Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akamai Technologies	10.74%	13.86%	6.07%
Viomi Technology	N/A	N/A	N/A

Risk and Volatility

Akamai Technologies has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Viomi Technology has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

94.3% of Akamai Technologies shares are held by institutional investors. Comparatively, 1.2% of Viomi Technology shares are held by institutional investors. 2.0% of Akamai Technologies shares are held by insiders. Comparatively, 34.3% of Viomi Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Akamai Technologies and Viomi Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akamai Technologies	2	9	10	0	2.38
Viomi Technology	1	0	0	0	1.00

Akamai Technologies presently has a consensus price target of $109.89, suggesting a potential upside of 3.83%. Given Akamai Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Akamai Technologies is more favorable than Viomi Technology.

Summary

Akamai Technologies beats Viomi Technology on 13 of the 14 factors compared between the two stocks.

About Akamai Technologies

Akamai Technologies, Inc. provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and cloud computing services, such as compute, storage, networking, database, and container management services to build, deploy, and secure applications and workloads. In addition, the company offers content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through various channel partners. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

About Viomi Technology

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, and other smart devices, as well as blenders. It also provides a suite of complementary consumable products and small appliances, such as portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and others, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.